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Prime costs include ________.
Bond Rating
An evaluation provided by a credit rating agency regarding the creditworthiness of a bond issuer, affecting the interest rates and investment appeal of its bonds.
Secured Debt
A debt that is backed by collateral, providing the lender with assurance that the loan can be recovered if defaulted.
Unsecured Debt
A type of debt that is not backed by collateral, making it riskier for lenders and often resulting in higher interest rates for borrowers.
Reinvestment Rate Risk
The risk that the yield from reinvesting cash flows will be lower than the initial investment's yield, typical in fixed-income securities.
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